Economy by sectors
Primary Sector
Intensive agriculture is favored by the EU, since it grants advantageous credits for production and reduces taxes. Its policy is aimed at self-sufficiency, which allows the free circulation of crops between member countries. This policy places the EU among the world's agri-food powers, after China and the United States. In this type of agriculture, the land is small but fertile, with favorable climates, which allows high yields. In order to achieve this, fertilizers, selected seeds, qualified labor, and special facilities (silos, stables and refrigerators) are used. Cereals are grown (wheat, oats, barley, rye), potatoes, sugar beets, fruits, vegetables, hops, flax, sunflower, forage "Grass (livestock)"), among others. In the countries of the Mediterranean region, there are few plains, so it is cultivated in the mountains using terraces. The famous Mediterranean trilogy (wheat, vine and olive tree) is cultivated. Dates, fruits, rice, tobacco and cotton are also grown.
For its part, extensive agriculture coincides with Central and Eastern Europe, where there is more land and less labor available. Large productions are obtained, at a low price, with a lower yield than in the western area, despite the use of fertilizers and selected seeds plus a recent modernization of machinery. Cereals, sugar beets, potatoes, cotton and flax are grown.
In the Western zone, selected breeds of cattle are used, which give high yields of meat and milk, fed to a powerful agri-food industry. Poultry is also raised to supply the cities. In the countries of the Mediterranean area, sheep, pigs and goats "Saanen (goat breed)") are raised, with the practice of transhumance. Cattle are raised in meadows with good pastures to obtain milk, as in the Po plain.
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Environmental conservation policy and forestry employ some 3.5 million people, making it one of the largest global producers and consumers of this resource, after the United States and China. In the EU, forest areas represent around 40% of the union's territory. The Iberian Peninsula alone produces 80% of the world's cork. In the case of the Scandinavian countries, a part of their economy is based on forest exploitation, which apply rational exploitation through rigorous laws to control logging and reforestation. Production is high and part of it is destined for the internal market of other Member States.
Several EU countries use the forest to protect the soil against erosion and fight the effects of the climate, with Denmark, Spain, Ireland and France having begun reforestation.
Secondary sector
Industry is the second most important sector, the second to contribute to GDP (28%) and the second to employ the active population (30%).
The industrial development of the EU has been extraordinary due to the massive use of energy sources, which allowed the mechanization and automation of almost all processes. Large investments, research, telecommunications make European companies efficient and competitive, with world-renowned brands.
In the countries of the European Union there are a large number of raw materials for industry, although they are not enough to feed it completely. European industry produces, above all, consumer goods with high added value and with little land factor. The fundamental sectors are: iron and steel, one of the oldest in the world; heavy chemical industries; capital goods industries; processing metallurgy, automobile, aeronautics and shipbuilding; and light industry and advanced technologies.
The industrial region has experienced an economic boost in the last 30 years to become one of the development poles of the world economy. Aeronautics (Airbus factories) are of particular importance, surpassing the American Boeing in the number of orders in 2015,[50] as well as numerous electronic and computer equipment companies (Siemens, Philips, Electrolux, Bosch, Vodafone, Movistar, Orange "Orange (company), Deutsche Telekom, Nokia among others). The importance of the industry can be appreciated by the place its companies occupy, among the most important in the world. The most prominent group is that of the automobile industry (Volkswagen, Dacia, Lamborghini, Land Rover, Renault, Volvo, Fiat, Peugeot, among others...).
Furthermore, four of its countries are among the most industrialized economies on the planet, these being Germany, France, Italy and Spain, the first three of which are also part of the G8.
The EU hosts significant reserves of coal, oil and natural gas, although they are insignificant compared to other regions of the world such as Russia, Latin America or the Middle East. By country, the largest oil reserves are exploited by Denmark, Germany, Italy, Romania and Holland.
In 2001 the EU as a whole produced 3,424,000 barrels per day, however consuming 14,590,000 (2001) barrels per day.
All countries have ratified the Kyoto Protocol, and the EU has historically been one of its greatest defenders.
Europe has important deposits of coal and iron that favored its industrial revolution and its subsequent economic and political development. In the EU, mineral consumption is very high, which demonstrates the high level of economic development achieved by the countries in the region. Currently, recycling has gained popularity, reducing the exploitation of minerals.
The states with the highest production of iron and zinc are France and Germany. While Austria, Poland and the Czech Republic have important coal deposits. Hungary has the largest reserve of bauxite in the entire EU, destined for the production of aluminum. Spain is the largest producer of mercury and a leading producer of gold, coal and iron; while Italy stands out for obtaining salt, potash, manganese and coal.
For the conservation of the environment, the European Parliament banned open pit mining with cyanide in all member countries, closing the doors to mining companies that have not passed this type of technology to obtain gold and silver.
Tertiary sector
Cooperation and trade agreement with the United Kingdom.
Association with the United States.
Free Trade Agreement with South Korea.
Comprehensive Agreement with Canada.
Trade agreement with Colombia, Peru and Ecuador.
Trade agreement with Mercosur.
Free Trade Agreement with Mexico.
The European Union is the cradle of the railway, in addition to having the most modern and efficient transport infrastructure in the world. It also has the most capable metro systems in the world. The French capital's metro is the one with the densest network and the most efficient circulation, offering 16 lines that serve 300 stations. The Madrid metro is also one of the most important, ranking eighth in the world with an equally dense network in its central area. Air traffic is very intense due to the enormous distances from the continent and the great mobility of people for work reasons, combined with the high living conditions of the Member States. The main air hubs are the Paris-Charles de Gaulle Airport, one of the most important aviation centers in the world, the Frankfurt am Main Airport and the Amsterdam Schiphol Airport.
The European Union is a major tourist destination, attracting visitors from outside the Union and citizens traveling within it. Domestic tourism is made more convenient by the Schengen Treaty and the euro. All citizens of the European Union have the right to travel to any Member State without the need for a visa.
France is the world's number one tourist destination for international visitors, followed by Spain, Italy, and Germany. However, it should be noted that a significant proportion of international visitors to EU countries come from other Member States.